SARAJEVO (Bosnia and Herzegovina), September 8 (SeeNews) – Foreign investors in Bosnia on Monday called on the authorities in the country’s autonomous post-war entities to stop independently taxing them on the same profits, contrary to existing double-taxation laws. Bosnia’s Foreign Investors Council (FIC), an association consisting of 26 foreign companies who say they have so far invested over 8.0 billion marka ($5.94 billion/4.15 billion euro) in the country, said the authorities of Bosnia’s neutral Brcko District have required that several of its members pay the same profit tax for the last three years as they have already paid to the Muslim-Croat Federation authorities. The Federation, the Serb Republic and the Brcko District are the three parts that form divided Bosnia following the 1992-95 war in the country. They have separate fiscal systems for collecting direct taxes, while Bosnia has a central state-level Indirect Taxation Authority that collects revenue from Value Added Tax, excise taxes and customs tariffs. “This is an exceptional case where unaligned authorities between entities and the Brcko District and unaligned legislation directly and materially damage corporate business and de-motivate foreign investment in this country. Not only is the legislation is ignored but there is no body on any governmental level which has offered to solve this so obvious double-taxation case,” FIC said in a statement.
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